General Motors and Ford are cutting production in their domestic market over the coming months as car sales begin to slow amid wilting consumer confidence.

The companies will make 165,000 fewer vehicles during the fourth quarter than they produced in the same period a year ago.

Ford said sales fell by 13% during August, and GM reported a 14% decline, leading to stockpiles. They blamed the patchy economy, weak job numbers and soaring oil prices reducing consumers' inclination to spend.

DaimlerChrylser said its August sales fell by 6%.

Sales declines were most marked among the gas-guzzling sports utility vehicles. GM's Chevrolet Suburban dropped 38% and Ford's Expedition dropped 23%.

The fall-off is of serious concern to an industry struggling to wean itself off costly incentives introduced to stimulate sales after the terrorist attacks of 2001. US carmakers are also facing intense competition from overseas.

GM, the world's largest car-maker now expects to build 1.29m vehicles during the fourth quarter, down 6.8%. Ford is paring back production from 900,000 a year ago to 830,000 cars and trucks.